nd no longer work for those fine companies. One of my clients shut their doors last week with 17 Million in reserves because it was the smart thing to do.
Outsourcing allows for us to "off" the job to someone else however it doesn't reduce expenses nor does it align the resources in a dealership with the needs of the market. If outsourcing were the answer, I believe one of the top 3 providers would have nailed it by now but believe me they have not and we embrace all of them. At RyanTech we have 20,000 active dealers in our network which computes to most of the dealers out there and I'll tell you, the best solution is a DMS Integration product with a captained person in the dealership for photos. You don't have to use our DMSi(c) product www.dmsintegration.com but any reliable DMS Integration product and somebody responsible. In my opinion, we should take this down-turn in the business to analyze all expenses in a store, as I've done in my own business. We support over 300 third parties and even though there are some that I favor, there is nothing like the person at the store who gets paid commission on the sale to monitor the effectiveness of the photos, internet information and details on a vehicle.
For example, some people might not know Gary Gray of Orange Coast Jeep but he moved me as a teenager over 20 years ago selling products to dealers. As a teen I worked for Code-Alarm who had the factory contract with Chrysler to sell the EDS Security Systems that the dealers would install within the service department. Gary was incredible about finding inefficiencies within his own stores. So incredible that he went on to buy a few more stores in the time I knew him. I'm not sure how he's doing now but I imagine very well... Here is my point; in a conversation with him he told me that every quarter he analyzes his business, his expenses and his "advantage". He got so detailed that he analyzed the cost of coffee for his employees and customers within his store. He realized that he was spending thousands of dollars for coffee; the beans, cups, electricity and space! So he contacted a few local coffee houses and said that he'd rent them space in his store to provide coffee to his customers and cross advertise. Within a month he had not only removed his expense on coffee, he added more services like food vending machines where the route guy paid for space at the store and antied up a few hundred for electricity each month.
I was not only moved by Gary, I have carried this into my business and for example we've had the best three months ever since 1999. I know that sounds silly but Oct, Nov, Dec 2008 have yielded a 38% increase in our business; go figure.
Another story goes for my client Bob at WG. He continually states year after year that we make him 50% more efficient in every department every year. The service my company gives him is directly related to my experience with Gary Gray. If you're not aware of what we do you're welcome to visit my profile here as one of the first adopters however I feel it extremely important to do what's right by the dealers here and Chris' statements are quite valid. I've watched Chris turn around Subaru and Saturn stores and I know he's had success with other OEMs as well.
Do you believe the guy who pulls up in an escort with a printer and a window sticker has the same motivation? Or is he showing up for his ~$15 a car? How can you say it's good to outsource in this case?
Looking forward to your input.…
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